EXHIBIT 24 - admin.epiq11.com H... · EXHIBIT 24. Privileged & Confidential For internal use only DRAFT Confidential Discussion Materials Regarding Project Tower I. Valuation Comparison

EXHIBIT 24

Privileged & ConfidentialFor internal use only

DRAFT

Confidential Discussion Materials Regarding Project Tower

I. Valuation Comparison

tletbod A: Comparable Companies

Comparable Companies '''

, alitatton

'Average Enterprise Value (incl. Coup. Expenses)

+ Equity investment 6 Other Assets i/I• NPV of ESOP/S-Com Benefit t'i :..

lAgiusted Elp*rpiise Value

+ c.asn

.. Debt '''- Contingent Llabillies

k 1' ,. Akki.eiikkal " ' ; Nr4c,- =STEAMY:2MM

lethod It: Discounted Cash Flow

DCF - Petpigutly MethodDCF -Ef31713A Whittle MalbootCOmParable Trar.aclin'tsSum or Peds

EBEN '. i•-..1.?.;t'Y'P'0.*0,.'t _ .1;',Aft )

lAverage Enterprise Valueu Equity Investment & Other Assets l''• NPV of ESOP/S-Com Benefit "'

FAclusted Enterprise Vele.4 Cash

.- Debt '5'- Contingent Ligbillies-

..; +.i..:1 : 4:74111M111' 4**. . #iiCalZW, %^ .'1;;1:1400 ' ' *Xi :=V; ". • 17k *7 it: •

Key Astumptionst

Projections pronded by: Cid Management ManagementVslustion Parameters: CAI Citl VRC

WACC 8.3% 8.3% 66% . 8.5%Cost of debt L + 400bps -L + 450bps 1. 400bps -L • 450bps L .• 206OpSCost of equity 11.7% 11.7% 9.7%-10.6%DCF EBITDA Exit Multiptes 6.Sx 6.5x 6.7x -10.5xPerpetuity Growth Rales -0.5% to *1% -0.5% to .1% -1.3% to +1 9% (implied)

Note: US dollars in millions. Further details am provided on p3(I) Based on latest Valuation Research ("WC, solvency analysis dated December 4, 2007 presented to Tribune's board of directors.(2) CCMParab)e inatilges used are 6.5x 2008 EBITOA for Publishing and 8.2x 2008 EBITDA for Broadcasting.a/ Includes value of equity investments, Cubs/Corneas( and other assets. Per report from VRC.(4) Includes PV of 4048) eliminations of $60mm per year. Tax savings based on 10year benefit 01 $623rnat par presenlafion to ratingagencies in base case and calculated as present value of projected tax expense in other cases.(5)Incluctee.$500n7m toduction in debt from excess cash flow and Bender tax settlement proceeds.

87 5- 1, a40-

4 .

41j7, cti re-„/

1.1

i ersit 1 2

DEporm E HIT

1'Rich Germosen, CSR, CSR-R, RPR, CRI

ICITI-TR63-CC 00023666

Confidential

Privileged & ConfidentialFor internal use only

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Confidential CM-TRIB-CC 00023667

II. Comparison of Management Projections — April 2007 vs. October 2007

The company revised its projections to account for the secular downturn in the publishingindustry

Diffartinea , 2007 2008 2009 2010 2011 Corn61411sa

RevenuePvb6slang (253) (2894 (248) 0554 (120) (1.099)Etroadcasting (58) 436) (33) (32) (21) (1001Total

oPerahg cash POW

(811) (323) 12794 inn (747) (1.279)

PoblishIng 1110 (188) (153) (135) (Its) 16024thsradcasting (21) 110) VW (13) (19) RSC.9.9.11t4 1 10 11 12 13 63Total Op9ratfrs0 Cosh Floor (126) 11591 0531 11371 11171 (51OO)Cash horn Equity gwastatonts (1) — (3) 157 (18) (20)SavIngs horn 401(k) contnIxAton (20) — — — — (20)01606 67(9 Reductions / (5aoasas) 120 (30) (30) ' (30) (30) (140)Adjust/xi 6065(96 (157) (105) (1M) (173) (153) (5835)

CaPIIII) Bap/Mats= (22) (40) .' — (72)

Nato, US 56, again,.

' ' nose -20109 I. 2011PI2084A 40459 20656 200799 20099,IMartagertnint Projea.)000 AMA Book I Apr0 2007)

Rosman01946044g 4.037 4,130 4097 4,025 3.946 3.959 3.998 4.025 4.054

% growth 2.316 40.850 (9(8%) (7094) ctoss 0.7% al% 0.7%134oadcastIng 4,457 1,602 1,414 1,400 9.222 1.293 1.297 1,339 1,338

1698549 3.1% (5.976) (2 (13.2%) 9816 03% 3.2% (01%)iota/ 5,494 5.832 5,311 5,433 5,168 5,262 5.295 5,364 5,102

%growth 2.5% (21%) (1.4%) (4.8%) LOS 06% 1.3% 0.5%

Operating Cash FlowPublishing 9,052 1.896 906 947 1 954 967 979 990

% 26% 21% 24% 34% 24% 24% 24% 24%

8roodoss0n8 OW 583 466 443 405 458 474 492 4(9% meeirin 37% 37% 33% 31% 33% 35% 37% 37% 36%

COrposaia 1 51) (51) 450) (30) (49) (61) (52) (63) (54)Total Operating Cash Flow 1.650 1.549 1,406 1,341 1,260 1.362 1,390 1,419 1.416

% Mervin 28% 27% 25% 25% 25% 26% 26% 26% 25%% change (4%) 676 2% " 2% (0%)$ cl+.94 (55) 76 28 20 (3)

Cosh From Equity Inveramenls 17 14 49 65 69 es 110 146 173$851rt99 from 40100 cootribuikat 60 60 Go . 60 6004606 (05. Rados/lora / 0ncreasas) 20 20 20 20 20A4usted EBITDA 1,665 1,562 1,450 1,404 1,435 1,649 tsea 1,645 1.669

Capilal Expenditures /84 217 200 222 172 172 120 120 120.

IM4891/401499 Pr049041004 (Bangs Atribcy Prosalttadon / October 20071 20666, .. 2007 zoos • 2090.

RowousPUlftshing 4.025 3,093 3.680 3,752 3.840 3,928

% growth (02%) (0 4%) 20% 2.3% 23%Broadcasting 1908 1,164 1,257 1,264 1,307 1.317

16 growth 07%) 850 1% 3%

row 3.433 4,657 4,937 5.015 5,147 5,245% (90.6%) 9.6% 16% 26% tg%

OP6r6tIng Cash FlowPublishing 947 786 814 844 875

% hunk 24% 21% 22% 22% 2216

Broadcasting 443 384 448 464 .470. 465.96 margin 31% 33% 36% 37% 37% 35%

Corgorata (60) 4421 (41) 1417 (41) (41)Thud Opanding Cssh F14W 1,340 1,168 1,193 1,237 1,392 1,299

% margh/ 25% 24% 24% 25% 25% 25%% change (13%) 3% 1% 4% 1%5 dune (1130) 33 44 45 IT

Cash From Equity 5wastrhants. sa 99 115 140 163Savings horn 401110 contribv6on 40 60 60 60 60131hcr Exp. ROductions I (Increases) (10) (10) (10) (30)

Adjusted EllITPA 0,404 1.268 1.342 1.402 1.472 1.51276 ortoryin 26% 26% 27% 28% 29% 29%

Cagitai Espertdituros 222 140 132 125 125 /28

.

• -: 21,107PF 2OO 2blOP ,20111?-

818 745 691 666 644415 386 389 407 372(41) (41) (41) (41) (41)

1,192 1,091 1,039 1,032 976

68 99 115 140 16340 60 60 60 60— 30 30 30 30— 25 25 25 25

$1,300 $1,304 $1,270 $1,287 $1,253

2007PF 2008P. 2009P 2010P 2011P

818 718 618 568 518415 386 389 407 372(41) (41) (41) (41) (41)

1,192 1,063 966 934 84968 99 115 140 16340 60 60 60 60— 30 30 30 —— 25 25 25 —

$1,300 $1,277 $1,196 $1,189 $1,072

2012P , I

628_381(41)

968181603025

$1,264

2012P 1

518381(41)858.18160—

Privileged & ConfidentialFor Internal use only

DRAFT

M. Comparison of Management Downside Case vs. Citi Case

Marragemen4lowpsrde.Case.

PublishingBroadcastingCorporateOperating Cash FlowCash Equity Income401K EliminationsElimination of BonusSalary Freeze

1PF Adj. EBITDA

iCitt Case

PublishingBroadcastingCorporateOperating Cash FlowCash Equity Income401K EliminationsElimination of BonusSalary Freeze

1PF Adj. E131TDA

Confidential CITI-TRIB-CC 00023668

Privileged & ConfidentialFor internal use only

DRAFT

IV. Case Comparison at Midpoint of Valuation Range

6f2I-Pofir1WACC 276_1016

f'V Cosh PCwsTeroirtal 0602 tamaOcsulna P671117i67i''. -PV CO,Pnj41. Evens.

riali*01f066.7f2,600170C702.01,• PV8 4:ullS2Irry Freeze _

• 5q440 Imrstments S Other Assets

;64 Pirm,Vr1.113), •

PV6010721mkotkr.PV S-Colp tax %WNW'

r NM."( 050163-0orp sertofit

• Cash-Dr12• Condogent 1.1aNties

701,1 Eq211),Vrtur

.. fdanaciaa,ant Base Casa ...

PaC'"W" Groat% 6.817070681124.carp.. f° 0.0...6 irkr22

6.645 5,645

5.687 4.5918,783 ...,3";tA3:17 71,: 1M33(326) 7604 (302)

./43;;C:7-.4__Urgiqni'2.("1,11).','T!'"-'-''6.8?1- - -

8.459 ..,....".922 %En

3,362 5.312 3.342

11771'..

622 022 ta823 isa 62.3

1.4.3 1.445 1.445

1,21:.-I6,-2-(671.-.W677‘.11;,7, -.:2;,..,,•-.7

198 166 166(13,114 (13317) 413m2)

(677 (67) 164$211 $5.871 , $1.803

Manaaaniant.Downskde Case

Payer", £117r0A

Grares 10.60Fir

oaerpnra (‘) Mrcror freihad

4,031 4,634

3,597 2,850

- Loot" • i;22,s7;',-..rosi

non OM ton• 7;s99.7.ff ,kr-•

616

3668 3,066 3,060••• -10766' 11,364_

A' 4±7(

622 822 022342 342

1.171 1.141 1,171

'SOW'196 196 las

(13512) (13,112) (13,112)179 (87)

07674 IMO • . 791:2671

'1., • ' Ciii Caaa.." •

202120.e....""". 02•22, *AO/

Carconirs in Cre-.04600ad -16err,0- 4.425 4.425- 3,802 3,078

7 1 7.r.-als7'77*- firm ----'''-irr;

13097 0091 (09)6'..4!''.027 '....- .;.',; !.:7040. - - .. 9.613

141 121• . ...,. • 7!!.! .. , . 710.S....

3,1166 3,066 3,066

-. -.:!?Yr.'.....` '.1921'.- - ' • .101111622 622 822164 004 161saa sae

11,91ti-'.... '..16,867

- tali 198 198(13,112) (13012) (13,112)

Pa) 184 .017)61,428) ist,ito) (01.914)

'

Source: Company provided model dated October 5, 2007-(1)EBITDA is adjusted for corporate expenses of $41mrn per year Comparable multiples used are 6.Sx 2008EBITOA for Publishinghing and

8.2x 2008EBITDA tor Broadcasting.(2)Bonus Cut/Selary freeze benefit of 855rrun per year in downside case only Cid downside case assumes that salary freeze/bonus cutsonly apply for first three years of operations.(3)Per report from VRC.(4)401K eliminations of $60mm per year.0) Tax savings based on lOyear benefit of $623mm per presentation to rating agencies in base case and calculated as present value atprojected tax expense in other cases.(6) includes $50Orrun reduction in debt,

4

Confidential crrl-TRIB-CC 00023669

Privileged & ConfidentialFor internal use only

DRAFT

APPENDIX

A. Equity Corn parables

B. Weighted average cost of capital

C. Analysis of Taxable Income

D. Discounted cash flow analysis — Management case

E. Discounted cash flow analysis — Downside case

F. Discount cash flow analysis — Citi Downside case

5

Confidential cm-TRIS-CC 00023670

Privileged & ConfidentialFor internal use only

DRAFT

A. Equity Comparables

(LLS. $ In millions) arre-el 17-1170:tif-'

I2008E Debt/ LTM EV/2008E i EV/2008E

Ticker Name EV Sales LTM EENTDA EBTTDA Total Debt Et:3170A EBITD-A ! EEIITDA

1'.Publishing:

GC.1 Gannet $13754 $7.821 12.084 $2.047 $4.418 21a 769 i 579,WPC) Washington Post 7.850 4.096 677 827 406 06x 8.4x 1 957MIS McCiatetty 3,890 2.361 589 638 2.579 4 4x 69x 1 6.1x INYT New York Times 3.806 3,261 521 577 1.024 2.09 9.3x i 66xLEE Lee Enterprises 1,665 1,128 269 278 1.409 5.2x 7.7x 1 6.0x

a-, 2:99

•AieqnMm 0.69 6.99 6.09Max 62x 9.39 9.59

4,715 6.5X 6.0xTR0 Tribune PubTrshing 5,087 $818 $786 1.99 6.5x

7,466 9.3x 9.59

Ticker Name Sales LTM BCF 20086 BCF Total DebtDebt! LTM

BCF

Oric-57

EV/ 2008BCP

Broadcasting:GIN Grey TV 81,484 $325 $123 $179 $925 7.5x 8.39

NXST Nexstar 1,049 272 108 150 679 6.3e 7.0x 1SBGI Sinclair 1,965 722 231 2.34 1,354 5.9x 13.4x

Lin TV t430 419 151 177 866 5.8e 8.1xHTV Hearst-Argyle 2,973 774 259 238 867 3.49 12.5xNVC Enbevision 974 289 95 194 495 5.2x 9.49MEG Media General 1.552 988 201 206 938 4.7x 6.8x

.1 LOxlitt.41.10.XM101420:1.-V4L

Min -3.49 6.8x iMax 7.59 12.59

3,043 6.8xIRS Tribune Ornacasting 3,695 $388 8448 8.2x

5,606 12.5x

LOW 7,759 J 6.0xIRE MID 8,783 • 1,273 1,294 1'l 13,112 10.3x i 6.84

HIGH 13,072 10.17

Soutee: Bloomberg pUbllay available research estimates.(1) Excludes Cotperele Expenses 01141mm per year end Sp9nunn cash equity income. nictudes $CnOrrun or 4019 eliminations

6

00023671Confidential

Pdvileged & ConfidentialFor internal use only

DRAFT

B. Weighted Average Cost of Capital

WACC Analysis

Cost of Equity

U.S. Risk Free Rate (10 Year U.S. Treasury)

Historical Equity Market Risk Premium

Asset Beta

4.232%

7.100%

0.53x

1.05x

60%

35.0%

Relevered Equity Seta

Debt Beta

Debt/Capitalization (Market)

Effective Marginal Tax Rate

Adjusted Equity Market Risk Premium

7.43%

Small Cap Risk Premium

Coat of Equity (RJ

Cost of Debt

LIBOR

5.050%

Credit Spread

L+4.00% L+4.50%

Cost of Debt (Pretax)

9.050% 9.550%

I c.cit4i, be.104tpr4taio "4-084°144:-

I WACC . 195% " 8.390% I

/Average

7

Confidential CITI-TRIB-CC 00023672

Priv i leged &ConfidentialFor internal Use only

DRAFT

C. Analysis of Taxable Income in Downside CaseInmikeul 7514.1•14 C644

200145 20080 20014 20109 20110 20120 70130 30110 201515 2016P 20170

Pubistlne 810 745 091 0415 544 628 512 597 502 802 553&neck, astlag

OCF488 . ..

5 1 ,233

804

s1.120. 380

$r Aso 407 372

01 073 ... ,T . .01,01? ....

391 30e• - -• ,

31 009 31 001

,397.....• -

• 3054 •

405 414

09.97 -isei '"--/Ass: 9/1A 034) (242)

.,

aim 6245) (246) 72401 S215) (249) (746) (240) (259)EMT 0111 DP 434 027 776 763 703 745 741 738 728

Cash Taro as% I (3m) (311) (232) (385) (270) 7207) 7234) (267) (258) (707) (253)

Afte l'as 6977 645 578 342 538 591 495 491 468 402 478 47.4

Ackg ODA 334 242 240 240 240 344 240 245 240 NO 246

Chsr6as 0,44.7 Workinp 050051 (10) (10) (10) (10) (10) (10) (10) (10) (10) (10) -

Less: 08041 Srpandkuras (Er. Corp) (123) (125) (101) (100) (100) (100) (103) (1001 (100) (100) (100)

Untsvera 0 Ana Cash Flaw 3740 lin 0177 0573 1534 9633 5925 9422 5417 3911 5820

958759. (204) (7.5) (4.31 (002) (44) (07) (6. 7) (43) (4.0) 01% (*MOM (7.7%) (7.0%) (0.6%) (0.3%) (0 8%) (0 0%) (5ax) (0 7%) (57%) 1.0%

8414104:

31200(1 31,233 31,132 01,080 91,077 115))? 11,001 $1,001 $104 HO 3941 071

Cmorsta (41) (AP (47) 147 (41) (419 (41) (41) (41) (41) (41)

OCD 1312 1,091 1.031 1,032 970 70 DSO 053 045 140 934

0.16 69)4% )(more 58 99 115 140 163 181 103 2/9 241 ZS 202

40150104,550492 40 60 ea ea 60 00 so eo 60 00 60

Effrrinsllon eon. 30 2) 10 30 30 30 30 30 30 30

82(514 (180920 25 25 25 25 25 20 25 25 23

IPA AP. 68(776' 31,300 91.291 91,270 $1,287 01253 01,264 II ,274 31,217 01,302 37.320 $1,141 I

lnerbabo 17 (34•5I (7.0, • 044 107 103 125 1,52 f7.5 20,8

% (Ammo 07% (20%) to; (2.1%) 0.9% rum 1.4)% 1.2% 1.4% (.6%

Tar A061154,01

PP 14 88117A 1,300.4 1,394.1 1,269.6 1.287.4 1,253.4 1,3542 1.274.4 1,207.1 1,0122 1,320.1 1,341.0

(38.A* (234.55 7242 9) (2461) 724019 (246,1) (2461) 7245.1) (2461) (24011 (346.1) (54(1.1)

61317 8,080.2 1362.5 1.0234 1,041.4 1,027.4 1,0161 1.028.4 1,041.0 1,036.1 1,074,0 9,094.0

0964 171trot 8404644 V$0.8) (086.01 (672.0) j872 (573.9) (658.7) (504.1) 0)114.91 (101,4) 072.41 (083.07

'Nati trAorra 5732 1)4.0 (503 184.7 1335 140.4 134.2 7441 174.7 201J 241.3

0.16 00... Psythls 345: 11 201.3 00.9 52.7 50.1 46.7 52.3 433 51) 61.2 70.6 845

10-Yea1 Tar PAansgenurd MenamensentDiscount Rs% 8Inetit 0,.. gasp." Clawralds Case 0)9 015,

sac 1704 632 sea 17310.0% 74e 552 341 164Ito% ' 632 334 955

• GAAP 09,4 00701604 A476ls7.54A. on .6.. lvals cs, 6.04.44 to Sr Noe,44 (0,S5144lIt8 eled cornpanY7 arq NM,. In ebyrnskie cast die 15105967 44(109210.112L5(IOU Alich can be .7.,00:7e0 to Were f ayes O7 Ole Uwe years.

PeromProoY • o oleo 59100,0041 5)907510005 1110)90 oColodo%

D. Discounted Cash Flow Analysis - MANAGEMENT CASE

8

9

Privileged &Confidential

For interna/ use onlyDRAFT

1

a in milk,*

2007PF 2008P 20059 20100 20119 20/2P 2013P 20149 20159

Management Case

20169 20179

PubSsling 818 788 814 844 675 908 927 949 971 994 1,097eroadcasting - 388 . 448 484. . 470 465 494. 497 .510. 523 . 537 551*SIP OCFLoss: 08.8

91,208 .(227)

01 ,2344235)

.51.278 .

(239)323.

(230)91,.,39031 340. • .... , ..

(739)

.31 ,

(239)

.51,424

(248)

$l'458(246)

.. . _

. 91,:1A44 ..(246)

.

31 530(246)

• 31,598(246)

EDT 978 999 1,039 (.984 1,100 8,151 1,175 1,212 1,248 1.254 1,3220841 Tows I 35% 1 (342) (350) (354) (379) (3ea) (403) (412) (424) (437) (450) (453)Mar Tax an 635 649 675 705 715 748 795 788 811 835 859Add: OM 229 23$ 239 239 239 239 2.45 246 248 248 246Plus: Changes Al 1411 WorkIrvCpIlaJ (10) (10) (10) (10) (10) (10) (10) (10) (10) ((0) -Lass: Capital Expondltuees C040) (131) (125) ((25) (125) (125) (125) (125) ((25) ((25) (125) (125)Onlaverod Free Cash Flow $724 $749 $779 5803 8819 3952 3878 3999 9922 5945 5990Simms* 28.0 29,1 25.7 10.7 32.7 24.4 22.5 211 23.7 362% Mama,

firtdoc:

3.6% .1.9% 3.814 1,3% 4.0% 2.9% 2.6% 2.6% Z6% 36%

1218450CF $1,206 91,234 91,375 31,323 51,340 91,390 51,424 11.466 $1.494 01,530 01,588Comm*. (41) (4)) (41) (41) (41) (41) (41) (41) (4)) ' (41) (41)OCF 1.160 1,193 1,237 1,282 1,299 1,349 1,382 1,417 1.453 1,459 1,52•Cash *PAY 1=4,44 ea 88 115 140 183 141 199 219 241 265 292401% ElltInatIons 40 60 80 110 SO so 60 83 80 80 50Ellmlnallon of Sows - - -Salaly Fro's,/

lpF Ad). 031710A 01,273 81,502 31,412 31,483 11,522 31.590 31.642 31,557 51,754 31,814 31,6713(0c/wase 78.8 603 70.2 39.0 68.4 52.0 54.8 524 60.5 83.5100,614 6.2% 5.0% 2.6% 4.5% 3.3% 3.3% 3.4% 2.556

Privileged & ConfidentialFor internal use only

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1) FIRM VALUE (Broadcasting & Publishing only)

WACC Gab Fk. Ten0%.31314144 rim Valu4.

(65.14) ttS% CO% (0.3%) 0.5% e%

7.30% 6.153 6177.2 7,756.8 7,783.3 11330 13.310 13,916760% 5.095 5.541.4 6.363 6.665.7 15,537 11380 tz.esz11.30% 4.8952 5.596.5 1 6.186.2 10,1135 11,ssi I 11,951BM% 5.699 4.509.3 5.103.4 5.457.5 10300 10602 1/.1569.30% 5.009 4687.5 4,5972 459973 9648 10,156 10.4599.80% 5.424 3,715.5 4,158.4 4,414.4 9.139 9,680 9.83815014

WACC 0.45 78010 -7"re<veem %/ewe • nnu 11411.4

6.31 654 0.01 916 65. 803

73(3% 6,153 4,843 5,037 5,231 10,996 11,190 18,3e47.90% 5.996 4.623 4,808 4.993 19,619 11604 10.9698.39%,eau%

0,945 I 4414 4.e9s 1 4,7974,553

10.259 Iexeas I 10.61210,352$os 4215 4.384 8,818 10.093

9.30% 5.020 4,027 4,160 4,349 9,505 9,746 8,9079.80% 5.424 3,847 4601 4.156 9211 9,474 9.078

2) FIRM VALUE (Including Corporate Expenses)

Corporsto

En4Cerp100%

($44.9) wor

80,18,3V+3.

< eaTroesoeulpiemutext-

.--Ewereae:

• .WACC

730%1%

(705.4)(0.5%)

511,62385%

013.6951.0%

513.311 $10":2916.5,

sumoE.&

$1100.3635r97310% (8515) • 16804 11746 12.208 9.966 10,150930% (608.8) 15.226 [ 10,9321 11,342 96271 10,0038,60% (569.7) 8,630 10,333 10,587 5.343 8.602930% (5354) 9.111 9,621 9,923

989.'7673739,211 9.372

5.80% (505.0) 8,634 9675 9.333 9.919 9,073

3) + Value of Bonus Elimination / Salary Freeze In Downside Case = FIRM VALUE (A)

I s - 74w . tIonms Elts•Onattera ( 86/ely

vacs1:- ,_•,....."--77;•„.• :.ii),P,73,;11 .643074.974•1044/ .';' :'447:-,•71 i'47.--.7i, .-7

• 5,13y. 6406144(04(8.5%) 05% CO%

Eat019 W:64%-6,29 6.84

730% 511.925 112.805 513.211 513.291 170,495 015,678780% (0,884 11.700 13.208 9986 10,160 10.3358.30% I I 10.326 10,9221 11.342 9.550.f 8,e21 I 10,033LBO%

130%9038 10,2339.111 _ 9.821

10,5876.922

93459.5211319 9,050

o9.5329.372

980% 9534 9,075 9.333 0.786 8,919 9,013

• Sarry ratings ors lo rodur. 50 0876 3 709.4699 .9,905049601049489Me in siNvekr9 C.10do48n0105 vetunes levings rochmikos only i0r0rst mrs.

4) + Equity Investments & Other Assets' u ADJ. FIRM VALUE (8) •

606671414. 8ViACC Other Mut6 09407 60%. 84411jr Vatue

(0.9%) 05% 1.031 124 Car7.30% 3,312 5(4937 915.917 $16.523 513,603 313.797 313.5917.50% 3.312 14.195 18,018 15.520 13.278 13,403 13648•.30% 3.312 (5538- lease ¶4.604- 11962 134391 13,316

3.312 72.951 13,545 11637 12.8258.80% 13950 126948.30% 3.3(2 12,423 12,933 93.234 18,397 12.623 12,6840.80% 3,312 11,946 13.307 12,645 13.070 /2.232 12385

Based Vaktgion Resserch sohlency report dale. December 2003.

10

Confidential cal-TM-CC 00023675

Privileged & ConfidentialFor Internal use only

DRAFT

5) +Value of 401K Eliminations

Asia

WACC Swings

0247.30% 962.47,80% 632.46.30%

ans I

96016

769.29.30% 722.9

9.90%

601.6

l --7 ,4"C.1.440,-.d . -. _23 i. --.000fl yV3184 Equity Val(04

(0.5%) 0.5% 8.0% ells 3.90 &dr

115,639 016.969 962.175 814.555 $14.280 414,949-

18.87$ 15901 16.402 14.160 14.345 14,320

14,360 15.056 1 /5,470 17,764 13,561 i 14,137_

13,720 84,314 14.668 83.424 13.505 13.767

13,146 13.654 17.957 13.065 13.2413 13,407

/0429 83.093 33.327 12,759 12.913 13.087

P4r 40114 Eli 10819

13) + PV of ESOP Tax Sa yings = ADJ. FIRM VALUE (C)

$ay AV of Tax Swings$1,050 D0.mr.44 Tao 800051

TaxWACC 1988981

- b)setteAu4del..unt-, ..9840117 EquityVatue

eft% (0.5%) 04% 1.0% 046 0.54 644

7.33% 623 516,512 8/8.492 . 518098 685,178 815.372 $15,5087.90% 623 15,701 16924 17.025 14,783 14.988 15,1536.3()% 1 623 .1 14,4e3 map I 16,099 14,407 14,594 1 14,7008.80% .623 14343 14.937 15291 14.049 14218 • 14,3669.30% 533 13.769 14.279 44,880 13,708 17,869 14,0108.00% 023 1325/ (3.692 13.950 13,382 13,536 - 13,690

7) - DEBT + Cash = TOTAL EQUITY VALUE

WACC o.br Equily-1819,9 Eq.4l7/09804_.

(0. 5$) 0.0% - 1.0% 670 6.5x &Sr

720% (13001) 53.511 54,491 45,097 $2.176 92.371 99.5897.80% la oo 7,700 3,537 4.024 1,787 1,987 2.1528,30% 8.182 1 2 8TA1 zose 1,462 1 i 587 j 1,758sec% (Isar) 1 342 1.916 2.290 1.0411 1,218 1.3858.30% (13.001) 268 1.278 1,579 707 948 two9.805. (13001) 250 001 949 381 535 689(250%

9626684 9198rnm 0494/01 bateoce poet 013,102.001 01 010t end 007 orconting.1 los.

11

Confidential CIT1-1111B-CQ 0023676

12

Privileged & ConfidentialFor internal use onry

DRAFT

E. Discounted Cash Flow Analysis - Management DOWNSIDE CASE(I e, elawa)

Pub) 1)1)938.toodcas•1In9

paP OCF

200814 2085z. 2010P 2011P 20129 2013P 20140 2515P 2016P

Downside Case

20/792097PF

81641$

. $1,233

745388

41.133 ..

59/

389. . ...$1,010

8641

. 407 .

. s1.013 ,...

844

. . 372 .'0.01-7

628NO

91,009

512389

91,031

597

397. ....... lto ,.

582405

5957 .. •

537414 _

$95.1. ..

551

422. .$575

1.853: 054 (234) (242) (245) (246)..

(246) (246) (240) (248) (246) (246) (248)Mr( ass ass MS 627 770 Tea 755 To 741 735 729Casts Taxes I 35% I (350) (311) (282) (289) (270) (267) (264) C2621 (359) (257) (255)After Tax EDIT 849 578 542 538 501 496 491 488 482 478 474Add: O&A 234 242 240 246 240 245 246 245 246 240 24ePlus: Changes In Mel Working CapiEel (10) (10) (10) (10) (101 (10) (10) (10) (10) (1O)test Capital Expenditures (Ex. Cop) 4133) (125) (101) (103) (no) MO Om (loo) Ow/ mot OMUnlevered Fore Cash Flow $740 $655 . 7077 9873 9830 9832 9928 $622 0617 1813 14120Sim:mos. (95.4) (7.5) (43) (3971 (4.8) (5.1) (473 (4.4) (4.0) 6.316 Maros* (to) (1.)18) (2614) (08%) MS%) 0.8N (0.8%) (0.7%) (4.714) 1.0%

ElsIdge:

821P ()OF 91,233 $1,132 $1,080 91,072 51,017 51,009 11,001 $994 5987 9981 $970CoTorateOCF

(41) (Al , (41) (41) (41) (41) (41) , (41) (41) (41) (41)1,193 1,091 1,039 1.032 978 968 so 953 948 840 934

Cash Es..41y Income 88 59 1/5 149 163 181 199. 218 241 285 282401K Ell(111/110061 40 o so so 50 80 60. ea so so BOElieninatIon et Bonus - 10 30 ao 30 30 30 30 30 30 30Salary Freese 25 25 25 25 2$ 25 25 25 25 29

1PF Adj. EBITDA 91,300 $1,304 $1,270 $1.287 01,253 $1284 $1,274 01,281 $1,303 $1,320 91.341121404834 3.7 P4.4 17.e (V 0) /0,7 103 12.8 15.2 17.9 20.8% Increase • 0.3% (261() 1.4% (26%) 0.5% 0.8% 20% 6,3% 1.4% 1.6%

Privileged & ConfidentialFor internal use only

DRAFT

1) FIRM VALUE (Broadcasting 8 Publishing only)Tioihod •

ValuoWACC Cash Flow Tort7047.6(

(0.5%) as% 0.0%- Issse as% _ 1.4%7.30% •655 3.907.1 4,526.7 4,5703 8.792 9682 . 9,7657.80% 4,741 3.5049 4.0251 4.3426 6.748 8.7E4 0.8048,30% 3,15934,630 1 3.596.7 1 36622 7388 02251 0.4338.60% 4.525 2.052:1 3227.0 3 4576 6.370 7.753 7,0179.30% 4,423 2.5653 2603.) 3,096 7.009 7,331 7,522960% 4.329 2,350.7 2,628.6 2.792./ 6.675 6,654 7,1 /7'0.50%

r • " bLrestoastaoi;Stjaxxi 'WACC C06,1‘FlOw • 146636409/47174 7. 1)80 946914

6.64 153 Les 6.3s &Sr &ft7.30% 4,056 3.013 3.134 3,204 7,858 7,089 0.1091.80% 4.744 2.876 2.991 3.107 7,617 7.132 7.0487.30% 1 4,631 I 2.746 zess 1 2,966 7,300 7,491 7,5979330% 4,625 2,623 2.728 2,833 7,148 7,253 7,359830% 4,423 2.005 2,666 2.706 6.929 7.079 7.129990% 4,325 2.393 2,489 2.565 6,710 6.074 0.910

2) FIRM VALUE (Including Corporate Expenses)Ex-Corporal4

04491 Ip4r Yo17 rTTWACC Cotporsla &6761115170776 1.900949440-

1% 106%1 66% 1.0% 6.374 4.50 6.527.30% (705.4) 68.057 68,676 MOW 57,163 $7,203- 61,4047.00% (6535) 7.592 8,113 8,430 6,964 1.870 7,1940.30% 1 (600.6) 1 7.179 7,8191 7,655 6.769 8,97/ 1 8.9098.80% (569.7) 0,800- 7,184 7.400 0678 6,683 6,7886.30% (5334) 9.473 8.007 6,393 0.493 6.5949.80% (5r/5.0) 6 170 8949 0.8,2 6,213 8,309 0,408

+ VaItte of Bonus Elimination / Salary Freeze In Downside Case u FIRM VALUE (A)

655.0 ltwr Yoof Bono. E197.176771770/ /Salary Fro.34

WACC So IOWre:f.44.464,474-6‘74', T-s}EttribromultisfiAt.ta; .1

Eaoyvw. 60007846.04% 7.0% .8.73r

7.3016 785.7 18.912 59.462 60.645 07.940 68660 saies727.9 8.320 8,641 9158 7,652 7.807 7622

8.30% 618.1 1 7.097 06171 11.563 7.447 7657.1 7,607660% 634.8 7.442 1.849 8972 7.213 7,378 1.4Z39.30% 6666 7,070 7.392 7,583 0.590 7,090 7,1909.60% 662.5 0.733 1,011 7.175 13,770 0.072 8,603

30%1,5014673 607 6.67707oollo n/c9co by 1516 pa, 9.1 114.00g 9s4 41149; trt seksier. 400,4005 .888 8.70.+8 344095. 0090,7Y 18404 3 71Ws.

4) + Equity Investments & Other Assets* =ADJ. FIRM VALUE (B)

WACCEquity &Othw Aowoto 57,717( Voloo &Ratty Wow

*11

(0.9%) 0.9%- 730% 0.3.4 6.00 6.007.30% 3.066 019,909 012.629 612.812 $11.1315 $11,135 515.2567330% 3.066 11,397 11,907 12,224 10,758 10,873 40,999311.30% [ 3.058 1 02,823 00.3641 11.629 10.513 10.8231 19.733600% 0.080 10.009 10690 11,109 10,2/9 10,604 10,465960% 3.066 10.136 10,459 10649 10,056 10,100 /06569.80% 3.066 9.799 10.018 10,241 9,842 9.030 10.034

• Boacct VeValon Resew., 54 -1"90 deed Aroonbar 2006.

13

Confidential CITI-TRIB.CC 00023678

Privileged 8, ConfidentialFor Internal use only

DRAFT

5) + Value of 401K Bin/!nations

$600 MI' vow 4016 8008039506

1.) Pim/6E99y Ctowth keihod . • • I Ti"*. • E80113A84415p18 Ihrt/i.d

WACC Swings 008884815. Evity

0% (as%) RS% CO% 6.75 000 • 084

7.30% 9524 592.081 333,401 013,664 Sit .S•b7 912.080 512208

760% 882.4 12269 12,789 13,107 11641 11,756 11.871

860% 1 0216 1 11,745 12,1e6 1 451 11635 81.445J 11.555

0.60% 7632 11.2781112..7.

11,619 11.154 11.280

930% 7229 10,559 171: 11,372 10,779 90,870 10,979

9.80% 651.45 10.491 /0,780 10.923 10.524 10,820 10,716

6)+ PV of ESOP Tax Savings = ADJ. FIRM VALUE (C)

$6236349

PV08 Tax Swings

O908$494 T50 80304

WACC E990ty1.944/.EgultyV•10/1

760%

(4/0%349

0.0%)

$13,2110.8%

313.8304444

814.21441.28

012,311050

612.43704,

812.558

:7.00% 349 12,610 13.130 15456 11.890 (7,105 12,220

060% 122/95 12,6351 12,801 1/2505 11.7911 11.804

349 11,628 12.003 17,227 11,398 11,603 11,6080:30% 319 11,208 11,531 11,722 11,128 11.229 11,329080% 149 10,030 11,109 11222 90,874 10,969 1 1 ps-5

7) - DEBT + Cash = TOTAL EQUITY VALUE

WACC 1:61641. ...)!Tpeauya.swth

equttyVakm

711T(Di 1111;i1(1147(.4;041E5494748104

7

(0.096) 6.5% 1.0% 6 /A-. 6.3.r. 0..08

7.30% (11001) 8200 5829 81,2)3 0604) 0504) (t.443)

7.80% 00 (.083) 138 458 (1,011) (896) 478110.30% 0.4 1408) (201) (1.3180111M1 (1.097)AM% 413001) (/,374) (9e) (774) (1,603) (1.490 (1,103)9.30% (/3001) (1,793) (1.470) (1,779) (1.873) (1.773) (1,672)0.80% (13,001) (2,171) (1,894 (1,729) (2,928) • (2,032) (1619)0.50%

•Mat*, P8Savn ,0830 85 beience sheet 513.1,2mm a debt end SOT contkyare aeblAfes.

14

CITI-TRIS-CC 00023679Confidential

15

Privileged & ConfidentialFor internal use onfy

DRAFT

F. Discounted Cash Flow Analysis - CM CASE

a.

2007PF 2008P 2009P 2010P 20119 2012P 2013P 20146 20196

COt DownsIde Cos*

2016P 201711

Put/fishing 818 718 8.19 568 518 518 539 651 583 600 629Broadcasting 415_ 386 389 407... .... .. 372 381

•392 ser. .- . — 405.- .... — 414— 7 .•

422ttP 1:1CF n 81,233 . 11,104 . 91,007 .

.3975- . .;6?9; • 8E199 . • $224 . • 058 . /.. ',. ; f.105. ..-.. SVC!". 11,051

9.915 CM (234) (242) (246) (246) (No (248) (249) (2413) (248) (249) (246)tart 996 862 761 729 644 653 632 712 742 773 cos0ast57999s ( 35% (350) (302) (248) 050 (225) (229) (239) (249) (280) (271) (252)After Tn. Mit 648 560 434 424 419 424 443 463 182 503 523Acid: GU 234 242 244 240 246 249 • 246 248 248 246 246Plus:Changes r Net Worldng Capital (10) (10) (50) (10) (10) (10) (10) (10) (70) (10) -Les. Capital Expenditafo$ (Ex. Corp) (133) (125) (101) (100) (100) (100) OM (100) (100) (1M) (10O)Wavered Free Cash flow 2740 S667 5830 UN sssa 3560 5579 Ws 56ia 5036 $666

Mows* (73.3) (275) (20.2) (557) 5.5 18.8 99. 5 19.6 20.4 30.5•% increase (9.988) (5 0%) (2 2%) (0.O%) 1.0% 3.4% 3.4% 3.3% 3.310 4.616

BrIdea:

BOP OCF 31,233 30,104 $1,007 4975 5990 5899 3926 9050 61,019 $1.051Corporate (41) (41) (41) (41) (41) (41) (41) (41) (41) (41)

OCF 1,192 1,063 906 934 648 358 807 917 947 970 1,910

Cash Eqtiht Income ea se 115 144 163 181 199 219 245 265 202

401% Eliminations 40 60 so 50 80 so ea • ea ea 60 eo

eiminetlen of ()onus 30 30 30 - - -Salary Freoze

199 Ad). EiBlTait $1,306 91,156 $/,189 51,072 51,099 $1,146 55096 81,246 $1,303 51,3821

S increass (218) (60.6) (6.5) (117,3) 25.7 47.0 53.6 52.1 55.5 56.11488,440 (5.e%) . (6.3%) (0.6%) (9.9%) 2.5% 4.3% 4.4% 4.4% 4,4% 4.5%

[ nut.) 1WACC

6W472•64V .40+01,4044r.d." -E9u07-6072m

.9eFoi,hut.icup4.16.09.4

sAe3

7.30%7,80%8.30%8.80%9.30%0.80%

IA%$92356,5647,0847.4797.0336,836

7.2376.6280.462

6,0926,4396,307

87,1427,2247.0126,0656,6048,410

1%(705.4)(853.5)(axe) I(560.7)0352)

(6020)

(3474) 0.6%$2152 32,8217,600 8.2217,2228,8316,9796,181

&Sr81,393 57.312

6.976 1,10827758,079-6.3886,253

442.92.2969, Crowd, 1442.4 • . .64228411.106

rateo 8.9% 1.014511.382 112.031 612,44510069 11.430 11,77310,430 10,099 1 11.19210,037 10.443 10.0869.684 10.032 10238foes 9,669 9242

Equity-Yea.

0.50 6.10,810392 $10222 312602

10.105 70.309 10.4339202 10.101 1 10,2199.705 9.860 10.0119.993 9.708 9.8098,40 9,580 9,613

PriVileqed & ConfidentialFor internal use only

DRAFT

1) FIRM VALUE{Broadcasting & Publishing only)

Cash flow •

28414.53/4.4254.3234.2244.179

05009 . 7 Iwo

4.6414.531

;125 1

4,32342244,12e

742ntr07 V44n 0 floTiValw (ass) 9.5%

(MS%)

28% _ 7.0%4.21s.0 4,045.7 52395 8.058

0.026 ,6.504

3,7629

4,344.3 4.6682

8.313

0,875

9,2183.400.6 3202.0 I

4.1685 7.634

9307)

8.5933.078 ,9 3.483.0 3.725.6

'MO' 7,917 8.008

2790.3 3.138.7 3,344.3 3,416 7,363 7,569

2.536,4 2237.4 3,0132 6286

6,967 7,143

Is : ..7.;•k,:-:-A4,:qt..--:',- : - bi•ElinIMM.:43,19'. 4 697 63.,,',',,: 7.'4'''''.''':;Ci7.7.71:1:Z.,

742916.1 WO.. . 6242 669594 11.30- 8.50 600 1.34 9.50 494

3247 3,377 3,507 7,887 6,0/7 6,1473299 3,223 3.347 . 7.830 7,754 7.8702230 3078) 3196 7.384 7502) 7.6212,826 2,939 3.052 7.840 7262 7.3752409 3,001 7,915 2974 7,032 7.1402,579 2,682 2.785 4,704 2.1312 4,486 .

WACC

7.36%TAO%

6.30%8.60%920%520%020%

WACC

7.30%7.80%41.39%0.80%9.30%920%

2) FIRM VALUE (Including Corporate Expenses)Ex-Corporai.

3) Value of Bonus Elimination / Salary Freeze in Downside Case = FIRM VALUE (A)

34.49y.

(43.5142.3

1 1412 1

139.7139.5137.)

$820

Ipar year

WACC

7.30%7.80%9.30%2,6,3%9.30%0.80%

712n50 679.664096 /Salary 7 nen

.... . .' .:=0Ropm;atypiornh hicho.,1 7-! '. ... , /1.7.,7, -,•-a.:':., .LIA..91.1.? IMA)11.17f0. M4U004 . . .. .'1.

8.qu6y2aiv. 09.95 VIA»

(0476) 0.814 7.04 624 CU 56x58296 58.904 59.378 57,338 87,425 57,565

7.802 8,364 6,706 0.110 7.243 7,14377,363 L 7,035 8,125 19.919 7,1338271 7,376 7,618 6,719 6.530 6.0458,6143 6,993 7,172 6.507 6,800 6.7436.298 6,599 6.776 6,361 6,444 5,547

7,934 1

• Salary savfts 010 essurned 10 reduce by 10% per year knpri1ng greduml 0100 In 000000 OW 004,1100 rase es00rnes 9299623 reductions' onTy Orsilwols.

4) + Equity Investments & Other Assets*= ADJ. FIRM VALUE (8)

• Based on Ve000:00 1101eNc0 solveneyrepod dehtd December 2007.

940147 Inv. 4wAcc Other Assets

7.30% 3,6847.80%6.30% 3,066 8.80% 3,066930%

3,0669.80% 3.066

16

Confidential CITI-TRI8-CC 00023681

Privileged & ConfidentialFor internal use only

DRAFT

Confidential CM-TRIB-CC 00023682

5) + Value of 401K Eliminations

500.0 V447 4016 eliminations

77717 P.49741:017E—euvrtk.c—ret/74-417::.;::11 r-777.7-474.D.oi./471471;04077. "771WACC Swine. Value_kelt/ Equity Value

10.5%) 03% 13%

7.10% 952.4 112414 412.053 413,3974488.5.7 La,

08 8,304 417,474 411,6047.80% 882.4 11.751 12.312 82.655 11.067 11.1411 11.31515,38% 8vo I 11,242 11,7771 12.014 10,804 10,923 I 11,0478.60% 7692 10,607 11,217 (1,454 I0.554 95,667 10,7609.30% 7729 10407 10.765 ION/ 10.318 50.421 10,5329.80% 60/4 10,046 10,347 10,624 /0,006 10,102 10,295

6) + PV of ESOP Tax Savings = AD.). ARM VALUE (C)

4423 P001 T67 SaW7p79164 00741004 U404009

Too "- earnia mniim 01.4!..d •WACC 046401 Equity Vol.. Equfty Value

010% (440%) 0.5% 1.0% &do

7.30% 184 1482.479 $63,147 413,931 411,409 411,830 411,7687.80% 164 11.915 12,477 12,819 61.232 11.356 11,4809.36% I 104 I 11,416 /test 1 12,170 to.oe.9 11,007 I 11.2058.80% 104 10,971 11,370 11,618 10,718 10.831 10.9449.30% 164 10,571 10.919 11,126 10,480 10,588 10,6966.60% 164 70,211 10,511 80,6e8 10.253 10,356 • /0,459

7) - DEBT + Cash = TOTAL EQUITY VALUE

- i'7.7p7t;fliGkOrniCiA;tit -7 7:WACC EquierVelue Equity V../

(0 5%) 04% LON 0130 0.50 &Oa(11,001) (523) 51.6

7.80% 13001 (LW). (525)0560(182)

(41,493) ($IAM)(1,770) 1 648

141,2337,(1.522)

1.28% (1•68534 11,1104 (423) (2 033 (1,796)6.60% (13.001) (2.038) (1.625) (1,183) (2,293). (2,870) (2,057)8.30% (11.00)) (2,430) (2.082) (MTN , (2,524) (2,413) (2,395)

(61001) (2,79)) 42480) (2,3134 (2,748) (2,4452 12,0440.50%

truludas if Mi. 610018 00 55lOouSool, $ 1505..0140(..1Snacar08van4 8060410

17